Study of Government Subsidies and Manufacturers' Decision to Join the Blockchain

Abstract

Based on the increase of people's environmental awareness and the application of blockchain technology in various fields, this paper combines blockchain and green supply chain, establishes a secondary supply chain led by manufacturers and followed by retailers, explores the pricing strategy and blockchain platform adoption conditions of the traditional green supply chain compared with the green supply chain that joins the blockchain platform, and considers the pricing strategy of government-subsidized manufacturers and blockchain platform adoption The paper also considers the pricing strategies and blockchain platform adoption conditions of government-subsidised manufacturers. Firstly, the paper finds that green supply chain companies do not join blockchain platforms in all cases. Manufacturers and retailers are motivated to join blockchain platforms when the cost of operating the platform is low and consumer trust in the value of the product is low. This is because the benefits of increased demand due to increased consumer trust in green products more than compensate for the cost of operating a blockchain platform. However, when companies join the blockchain platform, the retail price of green products will rise and consumers will not benefit from the blockchain platform. When the government subsidises manufacturers, manufacturers, retailers and consumers all benefit from the blockchain platform when green supply chain companies join the blockchain platform. Furthermore, demand for green products does not always increase when there are government subsidies.